The price of Bitcoin has seen a strong rally in recent months. It has increased more than 770% since March of last year. This makes it a great asset with the best performance in the world. In relation to the analysis of the last weeks and the predictions, BTC has experienced a corrective week. After breaking all-time record, the price fell from $ 58,000 to $ 44,000. According to experts, being down means a «restart» before the continuation to the upside.
There are several factors that explain the recent surge in BTC. First, the halving (halving the reward) that occurred last year and caused a supply shortage. Second, the price went up due to high institutional demand, as companies like PayPal, Massmutual, and Square bought a substantial amount of BTC. At this point, it is worth highlighting the recent purchase of more than 1,500 million dollars in BTC by Tesla. Third, the price of Bitcoin increased due to the general policies of the Fed that brought interest rates to zero and the large quantitative easing.
A few days ago, the price of Bitcoin reached all-time highs above $ 58,000. After this milestone, still losing a bit of momentum, it continues to hold out above 40,000.
Bitcoin price bullish prediction
According to bullish predictions, this decline shows an organic and healthy trend. In fact, if it remains above the $ 30,000 low of January 2021, it would serve as a “reset” before the return to the upside. If this happens, it would correspond to the vast majority of the analyses carried out at the end of last December by various experts.
Specifically, for Jesse Cohen, a senior financial analyst at Investing.com, he predicted that Bitcoin will likely reach a level of $ 60,000 in the first half of 2021. Also, the founder of Pantera Capital predicted that Bitcoin will be worth more than $ 100,000 in the future, increasing 200% in the next eight months.
Likewise, the new data released by this investment firm and hedge fund reiterates JPMorgan’s sentiments regarding BTC, suggesting that its price action is closely following the Stock-to-Flow (S2F) model, thus reaffirming its faith that the digital asset reaches the $146.000.
Along the same lines, Chad Steinglass, head of operations for crypto investment platform CrossTower, claimed that after Bitcoin surpasses 40,000, he will see an explosive upward movement. Bitcoin saw a similar scenario in December 2020, when it struggled to break above $ 30,000. As soon as it did, it saw a fairly quick move to its all-time high of $ 42,000.
Investor confidence around BTC continues to grow
When looking at the market sentiment around Bitcoin, the digital currency shows more and more correlations with the basic functions traditionally offered by traditional fiat currencies for its users. That is, it has become a unit of account, a standard for deferred payments, and ultimately a store of tangible long-term value.
These are some of the main elements that could have motivated the millionaire investment made by businessman Elon Musk in January. An operation greater than 1,500 million dollars that was announced in early February.
Without a doubt, the confidence of the great capitals of the world in the stability and important profitability of Bitcoin is increasing. For large business and financial sectors, institutions such as the United States Federal Reserve represent barriers to the growth of the economy, due to their speculative and inflationary measures.
Investing in BTC safely
The widespread interest in cryptocurrencies is booming. However, a regulatory framework around them has yet to be defined. A point that translates into a lack of security in its acquisition and custody. Faced with these security problems, the first cryptocurrency investment funds have emerged.
BTV Fund is a gateway to the cryptocurrency sector, with a structure that mainly reduces risk, while allowing exposure to these attractive returns.
It is an investment vehicle that allows you to invest in Bitcoin and other digital currencies in a conventional way, solving the problems of purchase, custody and justification of the origin of the benefits obtained. In addition, it allows you to do it without being a specialist in risk analysis in this sector and making the investment as safe as possible.